Important strategy for predicting bottoms
Bitcoin (BTC), Ethereum (ETH) and XRP price have all broken down from critical horizontal support levels. The trend is considered bearish until these areas are recovered.
The Bitcoin price has been falling since hitting an all-time high of $69,000 in November 2021.
BTC price breaks down below long-term resistance
In June 2022, BTC price bounced to the long-term horizontal support area of $19,000 (green icon). However, the bounce was unsuccessful and the price collapsed during the week of November 7-14 (red icon). The $19,000 area is now expected to provide resistance.
If the downward movement continues, the next closest support area will be $11,500.
Compared to the 2017-2018 correction (highlighted), the current one has taken slightly longer (378 to 364 days) but has seen a slightly lower decline (78% to 84%).
Therefore, recovery of the $19,000 area would mean that the bottom is in place. This will also create and validate a bullish divergence (green line) for the weekly RSI. Therefore, it will make future Bitcoin price prediction bullish.
Ethereum price prediction
The ETH token is the original token of the Ethereum blockchain, created by Vitalik Buterin. The technical analysis from the daily timeframe shows that the price of ETH is trading in a range between $1,030 – $1,250. Ethereum price fell over the past 24 hours and is now trading near the bottom of the range.
While the daily RSI is generating bullish divergence, this has yet to be confirmed.
Similar to BTC, a retracement of the $1,250 area will confirm the bottom. Also, a bounce from the current price will validate a bullish divergence (green line) in the daily RSI.
XRP price
Like the rest of the crypto market, the XRP price has been falling since November 9th. The decline caused a break from the $0.385 resistance area.
Afterwards, the XRP price bounced on an ascending support line that has been in place since June 15.
Unlike the other two digital assets in the article, there is no bullish divergence (green line) in place for the XRP price.
So the future XRP price prediction can be considered bullish if the XRP price regains the $0.385 area. Conversely, it will be considered bearish if the XRP price breaks down from the rising support line.
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